BCom In Accounting & Finance (BCAF) SEM V 2018 19 May 2018-19 Financial Accounting V Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) Rewrite the following statements and state whether True or False (Any Eight ):
   • (1) No journal entry is required for the cancellation of unissued share capital
   • (2) Cancellation of contingent liability is treated as profit to the company
   • (3) Goodwill arising on amalgamation, as per AS- 14 is to be retained in the books of the company till the winding up
   • (4) Fictitious assets appearing in the Balance Sheets of transferor company. are transferred to capital reserve account
   • (5) Unmarked applications can be distributed among the underwriters in the ratio of gross liability
   • (6) Underwriters Account is credited when commission is due
   • (7) Partly paid shares can be bought back
   • (8) In case of buy back ata discount the amount of discount is transferred to
   • (9) Assets not specifically pledged are shown in List C
   • (10) Local taxes are an examples of secured creditors
   • (B) Match the following ( Any Seven): (7M)
   • (1) Firm Underwriting (a) Statutory Reserve of
   • (3) General Reserve (c) Total shares for which guarantee is given
   • (5) Liquidators Final Statement of a/c (e) Fictitious Assets
   • (6) Capital Reduction (f) Summary of Cash Book
   • (7) Contributories Goodwill
   • (8) Goodwill a/c in a loss making company (h) Court Order
   • (9) Excess of Purchase Consideration over Net | (1) Shareholders
2. Q2 Following are the Balance Sheets of Honest Ltd and Faithful on 31st Capital of Rs General Reserve 1,05 000 1,20,000 | Plant and | 12,30,000 On the above date, Faithful Ltd takes over Honest Ltd on the following terms and
3. Q1 All Assets and Liabilities are taken over at book value except the following which were revalued as follows : Premises and Plant and Machinery Rs.7,00,000
4. Q2 Equity Shareholders of Honest Ltd to be issued 10,000 Equity shares of Rs. each at 10% premium 3.7% Preference Shareholders of Honest Ltd to be discharged at 10% premium by issuing 8% Preference shares of Rs. 100 each (at par) in Faithful Ltd 100 marks
5. Q4 Debentures of Honest Ltd to be converted into equivalent number of Debentures of Faithful Ltd
6. Q5 Cost of Liquidation amounting to Rs. 4,000 were borne by Faithful Ltd You are required to:
   • (b) Pass Journal entries in the books of Faithful Ltd
   • (c) Prepare Balance sheet of Faithful Limited as per Purchase Method
   • Q. following are the assets and liabilities as on 31st March, 2018 of Neema Ltd The two companies agree to amalgamate and form a new company M/s Karthik Ltd. which takes over the assets and liabilities of both the companies The Authorised Capital of Karthik Ltd is Rs. 40,00,000 consisting of 4,00,000 Equity shares of Rs. 10 each The assets of Neema Ltd are taken over at 90% of the book value with the exception of land and building which are accepted at book value Both the companies are to receive 10% of the net valuation of their respective business as Goodwill The purchase consideration is to be satisfied by Karthik Ltd in its fully paid shares In return of Debentures of Neema Ltd, Debentures of the same amount and denomination are to be issued by Karthik Ltd You are required to:
7. Q2 Realisation Account, Karthik Ltd A/c and Equity shareholders Account in the
8. Q3 The following is the Balance Sheet of Sai Ltd as on (15M) 8% Preference Shares of Goodwill 2.00 Equity shares of Rs. 10 Building 6.00 000 6% Debentures of Rs.100 6,00,000 | Plant and Machinery 6.00 000 Interest due on 1,00,000 | Sundry Debtors Note :The preference dividend is in arrears for three years The following scheme of capital reduction was sanctioned by the court and agreed by
9. Q1 Preference shares shall be converted into equal number of 9% preference shares of Rs
10. Q2 The equity shares shall be reduced to Rs. 3 each. However, the face value will remain 3.6% debentures shall be converted into equal number of 7% debentures of Rs. 75 each The debenture holders also agreed to waive 50% of the interest due 4.Arrears of preference dividend is to be reduced to one year’s dividend which is paid in 5.The Sundry creditors agreed to waive 30% of their claims and to accept equity shares for Rs.60,000 in part settlement of their renewed claims 6.The assets are to be revalued as under: 7.Write off Profit & Loss A/c (Dr.) Balance, Intangible & fictitious assets 8.Reconstruction expenses were Rs. 2,000 Pass Journal entries in the books of Sai Ltd and prepare Capital Reduction Account
11. Q3 The following is the assets and liabilities of Fun Ltd as on 31st March, 2018, being the date of winding up is as under: (15M) 5,000, 10% Cumulative Land and Building Preference Shares of Rs. Plant and Machinery 100 each fully paid | Stock 000 Profit and Loss Ac 5,000 Equity Shares 0 of Equity Shares of Rs. 100 2 50,000 each Rs. 50 per share paid Note: Preference dividend is in arrear for three years By 31/3/2018, the assets realised were as follows: Land and Building Plant and Machinery 7,10,000 Expenses of liquidation are Rs. 86,000. The remuneration of the liquidator is 2% of the realisation of assets. Income tax payable on liquidation is Rs. 67,000. Assuming that the final payments were made on 31/3/2018. Prepare the Liquidator's Statement of Account
12. Q4 The summarised Balance Sheet of SK Ltd as on 31st March, 2018 is as Ascertain the maximum number of equity shares the company can buy back at the maximum possible price under the law as on 31st March, 2018 Assuming the buy back is actually carried out ascertain :
13. Q1 the maximum no. of equity shares that company can buy back and the maximum offer price it can offer the entries in the journal of SK Ltd and prepare Notes to Share Capital & Reserves and Surplus
14. Q4 A Company issued 75,000 shares of Rs. 10 each at a premium of Rs. 10. (15M) The entire issue was underwritten as follows: Total subscription received by the company excluding firm underwriting were The marked applications (excluding firm underwriting) were as follows: Commission payable to underwriters is at 5% of the issue price
    • (i) Determine the liability of each underwriter when benefit of Firm underwriting is given to underwriters
    • (ii) Compute the amounts payable or due from underwriters , and
    • (iii) Pass journal entries in the books of the company relating to underwriting
15. Q5 (A) Explain the legal provisions regarding buy- back of shares as per Companies
    • (B) Differentiate between Internal Reconstruction and External
16. Q5 Write short notes (Any Three): (15M)
    • (1) Underwriting Commission
    • (2) Consolidation of shares
    • (3) Full underwriting and Partial underwriting
    • (4) AS 14
    • (5) Need of Internal Reconstruction

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